The effects of ion beam injection in the magnetosphere are considered. The beam's parameters are those characteristics of the ion propulsion engines envisioned for use in solar power satellite placement (Hanley and Guttman, 1978a). Specifically, from a detailed anaysis of the beam's propagation through the magnetosphere it is shown that the bulk of the ion beam is not stopped in the magnetosphere. However, the relatively small fraction of the beam which is deposited via the beam's sheath loss may give rise to a large distortion in the magnetospheric plasma population. Possible loss mechanisms from the magnetosphere for this artificial energetic ion component are evaluated. Electron coulomb scattering yields the shortest lifetime throughout most of the plasmasphere provided that plasmasphere heating by beam ions is not too intense. Charge exchange dominates beyond the plasmasphere. The effects of pitch angle scattering due to beam ion turbulence may appreciably shorten beam ion lifetimes throughout the magnetosphere.